Intercontinental Exchange Inc. · NYSE:ICE

Intercontinental Exchange — Barclays Financial Services Conference 2012

17 slides from Intercontinental Exchange's conference presentation, Sep 10, 2012

  1. Slide 1: Barclays Financial Services Conference – IntercontinentalExchange (ICE)

    BARCLAYS FINANCIAL SERVICES CONFERENCE IntercontinentalExchange (ICE) SEPTEMBER 10, 2012

  2. Slide 2: Safe Harbor

    Safe Harbor Forward-Looking Statements This presentation may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding our business that are not historical facts are forward-looking statements that i

  3. Slide 3: ICE: Derivatives Market Leadership

    ICE: Derivatives Market Leadership  Global derivatives markets o Leadership in commodities, clearing and technology Average Daily Volumes: Futures and OTC  Broad distribution, network effect o 3 futures exchanges, 2 OTC markets, 5 clearing houses 4,000 +21% y/y o Global partnerships and infrastruc

  4. Slide 4: Consistent Industry Leading Growth & Profitability

    Consistent Industry Leading Growth & Profitability Revenue Growth  Long-term double-digit growth target: $1,400 $1,327 o Continued record revenue and earnings $1,150 $1,200 $995 o 1H12 rev growth 9%, diluted EPS up18% $1,000 +9% y/y $813 $800 $716  Record 1H12 revenues driven by: $574 $600 o Recor

  5. Slide 5: Robust Cash Generation & Strong Balance Sheet

    Robust Cash Generation & Strong Balance Sheet Operating Cash Flow $800 $713 Balance Sheet & Return Metrics as of June 30, 2012 $600 $534  $366MM in operating cash flow in 1H12 $487 +14% y/y $375 $366 $400  $1.1B in unrestricted cash $288 $200  $3B credit facility secured in 2011 $0  Debt-to-EBIT

  6. Slide 6: ICE Futures

    ICE Futures Annual Futures and Options ADV1 +4% y/y  1H12 futures revenues $329MM, +7% y/y 1,591 1,600 1,513  1H12 average daily volume (ADV) of 1.6MM, +4% y/y 1,306  Strength in Brent, Emissions and other energy futures 1,200 1,036 922 and options 767 800  Rate Per Contract (RPC) Energy Ags Fin

  7. Slide 7: ICE OTC Energy

    ICE OTC Energy OTC Energy ADC ICE OTC Energy Markets: 1H12 +12% y/y $2,000  OTC energy revenues of $224MM, +11% y/y $1,762 o Record OTC Energy Average Daily Commissions (ADC) $1,578 $1,600 $1,374 of $1.8MM, +12% y/y $1,202 o July 2012 OTC Energy ADC of $1.4MM $1,200 $1,117 $845  OTC energy volumes

  8. Slide 8: ICE OTC Credit

    ICE OTC Credit OTC Credit $200 $165 $166 $167 Credit Default Swaps (CDS) Business Overview $160  1H12 CDS revenue of $76MM, -5% y/y  2011 CDS revenue of $167MM, +1% y/y $120 o $100MM Creditex revenues, 61% electronic $80 o $67MM revenues from CDS clearing, +12% y/y $40 $0 Leading Global CDS Cleari

  9. Slide 9: Balanced Business Model: Multiple Growth Drivers

    Balanced Business Model: Multiple Growth Drivers Secular Drivers ICE 1H12 Revenue Diversification  Increasing global consumption of commodities  Volatility inherent in natural resource prices OTC Credit  Rising demand for risk management Market Data/Other 11%  Growth in emerging markets 12% OTC

  10. Slide 10: Globally Relevant Products

    Globally Relevant Products Geographic Diversity Consolidated Revenues International US Geographic diversification  49% of revenues from outside U.S. in ‘11 56% 51%  Diverse global markets: energy, ags, financials 64%  Serving customers in more than 70 countries  Exchanges/clearing houses in U.S.

  11. Slide 11: Extending Products & Markets

    Extending Products & Markets OTC Energy New Product Revenue Continued Product Development Millions  Evolution of Brent & Gasoil futures and options  Corn & soybean futures launched May 14  Canadian wheat futures – Oct 12 contract  Futures and OTC energy/ag options contracts  EU Aviation Allowan

  12. Slide 12: ICE: Leader in Growth Peer Group

    ICE: Leader in Growth Peer Group Revenue and Net Income Return on Invested Capital $400 20% 19% 19% $350 17% 15% $300 15% $250 $200 10% $150 $100 5% $50 $- 0% 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 2009 2010 2011 *LTM 2012 Net Income Revenue Growth Company Peer Margin Comparisons ICE V GILD ISRG AA

  13. Slide 13: Consistent Growth and Innovation

    Consistent Growth and Innovation OTC Energy and Futures Open Interest OTC Futures Global derivatives market leader OI (000) OI (000)  Designing solutions and implementation roadmap 60,000 10,000  Emphasis on risk management & capital efficiency 50,000 8,000  Providing solutions to drive certainty

  14. Slide 14: Appendix

    APPENDIX

  15. Slide 15: Strategic Approach to Derivatives Markets

    Strategic Approach to Derivatives Markets Opportunity to Bring ICE’s Develop a platform expand into new platform and Brought Options markets expertise in that provides asset classes & Establish a new transparency & complement energy markets to transparent and benefit business risk Nascent emerging s

  16. Slide 16: ICE Average Daily Volume History

    ICE Average Daily Volume History 2012 January February March April May June July August September October November December ICE Futures Europe 1,113,282 1,199,734 1,055,330 1,065,736 1,137,794 1,224,942 1,154,451 1,019,144 ICE Futures U.S. 355,406 437,690 435,110 447,306 389,267 550,629 359,571 312,

  17. Slide 17: ICE Futures Rate per Contract History

    ICE Futures Rate per Contract History Rolling Three-Month Average Rate per Contract 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ICE Futures Europe Futures & Options $ 1.62 $ 1.60 $ 1.56 $ 1.55 $ 1.55 $ 1.56 $ 1.57 $ 1.55 ICE Futures U.S. Agricultural Futures & Options $ 2.55 $ 2.71 $ 2.68 $

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